what's the best approach to marshaling our resources?

My wife and I are planning to purchase a house and sell our existing condo. We're trying to figure out the best way to make this all line up if we cannot put selling the condo as a contingency on a purchase agreement.

• Combined income is $225,000 gross.
• Current condo should sell for ~$550,000, according to our realtor. We owe $212,000 on the mortgage. So figure that after closing costs/realtor fees, we would net $300,000.
• We are looking at homes between $800k-$1m.
• We have $180,000 in various taxable brokerage accounts; all would be subject to long terms capital gains tax.
• I have $350,000 in a 401(k) and $60,000 in a Roth IRA. I checked the specifics of my 401(k) plan: I can take a (max) $50k loan at "12–60 months term at 6.75% interest"; and it specifies that "If you leave [employer] for any reason – including as a result of a layoff or workforce reduction – before the loan is repaid, you can continue to repay the loan."
• Wife has $100,000 in various retirement accounts; we would prefer not to touch these.
• We're currently cash poor due to paying for a wedding last month, but no other debts. Credit cards paid off every month, no student loans, etc. We would normally expect to save (after retirement contributions) between $4-5k every month with our current mortgage.

Our agent says that in our region (VHCOL) offers with contingencies simply are not accepted. So if we want to make an offer with 20% down (max $200k), prior to selling the current condo, what's the best approach?

My current thinking is to sell $150k of the brokerage and take a $50k loan from the 401(k). As soon as we close on a new home, list the condo for sale. We can afford to cover both mortgages if necessary but our agent is confident (and we agree) that the condo would sell quickly. Then once the condo sells, repay the 401(k) loan immediately, make sure our savings/emergency funds are comfortable, and use the remainder to make a lump-sum early payment on the new mortgage. Then possibly recast or refinance depending on rates and such.

TIA!

P.S. We know we could also wait a year to rebuild cash reserves; this is assuming we don't do that. Also selling the condo first and renting/living with family is not an option we're considering.

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source https://www.reddit.com/r/RealEstate/comments/1u99clz/whats_the_best_approach_to_marshaling_our/